Amara Raja Batteries Limited reports a revenue Rs. 1,151.04 crores and PAT of Rs. 62.68 crores for the quarter ended June 30, 2020.
Mumbai: Amara Raja Batteries Limited, India’s leading Industrial and Automotive Battery major (BSE: 500008 & NSE Code: AMARAJABAT) today reported a revenue of Rs 1,151.04 crore in Q1 FY21 (Rs 1,814.95 crores) and profit after tax (PAT) of Rs. 62.68 crores (Rs 140.91 crores). The Earnings Per Share (EPS) for Q1 FY 21 was at Rs. 3.67.
For the quarter ended June 30, 2020
Rs. in crores
|June 30, 2020||June 30, 2019|
|Net Revenue from operations||1,151.04||1,814.95|
|Profit After Tax||62.68||140.91|
The performance of the company during the quarter comes against the backdrop of severe disruptions in manufacturing, supply chain, and sales and distribution operations due to COVID-19 lockdown. Despite the challenges, Amara Raja Batteries has performed well to manage the demand and supply, by implementing completely new Standard Operating Procedures across operational branches and units. Various measures such as Amara Raja People Safety Management System and ‘WE@AR’ employee digital connect platform were implemented successfully to ensure smooth operations even at the uncertain times.
In the automotive segment, OEM demand was subdued due to lockdown challenges across the country and vehicle production could recommence only in June with graded ramp up. Demand for batteries in after market recovered sharply and supplies were ramped up to cater to market requirements while implementing the new operational guidelines across the business operations. Both AMARON AND POWERZONE channels proactively reached out to consumers through “JumpStart” campaign to keep batteries in charged condition in vehicles parked for long periods during lock down phase.
Industrial Business witnessed sharp demand ramp up in UPS and TELECOM sector. The company responded to the needs of customer segments such as Telecom and UPS to ensure uninterrupted supply of products and services under essential category to support the critical communication networks and data centers across the country.
Exports faced major challenges in the quarter. Markets in many countries were either impacted by lockdowns or disruption in logistics.
Mr. Jayadev Galla, Vice Chairman & Managing Director, Amara Raja Batteries Limited said, “This quarter’s performance holds special place in our hearts and consciousness, not due to the numbers, but due to unflinching commitment and commendable spirit shown by employees, partners and all stakeholders towards the organisation. The leadership here has been duly sensitive towards the health and safety of all our people. We have initiated several measures that’s helping us project responsible growth, including health screening and innovative business performance linked pay(BPLP) which ensures employee health and motivation remains strong throughout the crisis.”
Commenting on the Q1 performance, S. Vijayanand, CEO, Amara Raja Batteries Limited said, “Even as the COVID-19 pandemic disrupted the business operations and normal life in the society, we focused on executing our strategic initiatives in product development, digital transformation and capacity expansion. We are continuing to strengthen our internal policies and looking at newer operating models to maximize the utilisation of resources while ensuring utmost caution in the new normal.”